This bill establishes specific notice and compensation requirements for residential tenants who are displaced due to renovations. Under the new provisions, landlords are required to compensate displaced tenants for the reasonable rental cost of a moving truck or van, as well as an amount equal to 12 times the monthly rent paid by the tenant. This compensation is mandated if the landlord has either issued a written notice to quit or filed an eviction action, claiming the need for possession for renovation purposes, or if the tenant is displaced because the owner or a buyer intends to occupy the unit, with a representation made regarding renovation. Payment must be made within specified timeframes, and failure to do so will result in interest accruing at an annual rate of 18 percent. Additionally, if the payment is not made in full within 30 days, the unpaid balance will become a lien on the property.

Furthermore, the bill requires landlords to provide written notice to tenants at least one month prior to the requested departure date if they are attempting to persuade tenants to vacate for renovation purposes. This notice must outline the circumstances under which a tenant can be evicted for renovations and clarify that eviction is not permissible unless those circumstances are met. The Commissioner of Community Affairs is tasked with preparing a model statement for landlords to use in compliance with this requirement. Overall, the bill aims to protect tenants from wrongful eviction under the guise of renovation and ensure they are adequately compensated for their displacement.